Keyword: oil

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  • North Sea oil industry 'close to collapse'

    12/19/2014 12:13:59 PM PST · by Lorianne · 26 replies
    BBC ^ | 18 December 2014 | Ben King
    The UK's oil industry is in "crisis" as prices drop, a senior industry leader has told the BBC. Oil companies and service providers are cutting staff and investment to save money. Robin Allan, chairman of the independent explorers' association Brindex, told the BBC that the industry was "close to collapse". Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims. "It's almost impossible to make money at these oil prices", Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. "It's a huge crisis." "This...
  • Chevron, Statoil Announce First Oil Strike In New Gulf Of Mexico Field

    12/19/2014 12:23:47 PM PST · by Lorianne · 14 replies
    Oil Price ^ | 03 December 2014 | Andy Tully
    Two multinational energy giants, Chevron Corp. of the United States and Norway’s Statoil, have begun extracting oil and gas from the large Jack and St. Malo fields in US waters of the Gulf of Mexico. The two fields are among the largest in the Gulf and are expected to yield 94,000 barrels of oil equivalent and 21 million cubic feet of gas per day for an estimated 30 years, Chevron said in a statement on Dec 2. The Jack field’s reserves were discovered in 2004 and the St. Malo oil was discovered a year earlier. The fields are situated about...
  • Obama: Keystone benefits for U.S. consumers, workers nominal (More crap sandwich advice)

    12/19/2014 1:34:17 PM PST · by AngelesCrestHighway · 26 replies
    Reuters ^ | 12/19/14 | Staff
    U.S. President Barack Obama said on Friday that construction of the Keystone XL pipeline to transport crude oil from Canada to the U.S. Gulf Coast would only nominally benefit American consumers and workers. "There is very little impact - nominal impact - on U.S. gas prices, what the average American consumer cares about," Obama told reporters during an end-of-year press conference. In his strongest comments on the Canada-to-U.S. pipeline to date, Obama picked apart some of the most common arguments proponents have used to urge the president to approve it: that it would create jobs, lower domestic gasoline prices and...
  • The reason oil could drop as low as $20 per barrel

    12/19/2014 12:11:58 PM PST · by C19fan · 65 replies
    Reuters ^ | December 19, 2014 | Anatole Kaletsky
    How low can it go — and how long will it last? The 50 percent slump in oil prices raises both those questions and while nobody can confidently answer the first question (I will try to in a moment), the second is pretty easy. Low oil prices will last long enough for one of two events to happen. The first possibility, the one most traders and analysts seem to expect, is that Saudi Arabia will re-establish OPEC’s monopoly power once it achieves the true geopolitical or economic objectives that spurred it to trigger the slump. The second possibility, one I...
  • What’s Really Driving Saudi’s Reluctance?

    12/19/2014 10:50:36 AM PST · by thackney · 41 replies
    Oil Pro ^ | 12/19/2014 | Kurt Rippelmeyer
    There are numerous stories, on the internet, regarding the decline of oil prices. Everybody has an opinion or forecast, but unfortunately, they range from the eternal optimist to depths of the ultra deep (well ok the deepwater) drill rig. The majority of these posts talk about the glut in recent months as supply overwhelms the demand. Mostly thanks to slumping economies around the world, especially the largest users of petroleum. There is also significant chatter around the internet about Saudi Arabia (KSA) and their reluctance to curb production, which would help the price of oil go back up, to the...
  • US stripper well operators eye closures amid low oil prices

    12/19/2014 6:30:24 AM PST · by thackney · 30 replies
    Financial Times ^ | 14 DEC 2014 | Gregory Meyer
    Analysts examining the effect of the oil price’s precipitous decline on companies should spare a thought for stripper well operators, the mom-and-pop businesses that coax the last trickles of crude from long-ago drilled holes. Although tiny in isolation — the average stripper well yields less than 2 b/d — there are more than 400,000 such wells in the US supplying about 11 per cent of US oil production. They produced 700,000 barrels per day in 2012, the latest year for which data are available — as much as the OPEC member Qatar, according to data from the Interstate Oil &...
  • EIA, Analyst: US Crude Production Strong, Despite Rig Count Decline

    12/19/2014 5:05:37 AM PST · by thackney · 8 replies
    Rig Zone ^ | December 18, 2014 | Gene Lockard
    Rig counts have trended lower in recent weeks, and the drop is right on schedule, according to online economic blog Zero Hedge. There is a lag time of about four to six months before initial declines in crude oil prices lead to a reduction in rig counts, and it’s been about that long since crude oil prices began sliding last summer. But while analysts acknowledge the reduction in rigs, they say production levels will continue to grow, though not as quickly. There can be a reduction of as much as 10 to 25 percent in the number of wells without...
  • TransCanada CEO says it's not easy, but oil business is 'resilient'

    12/19/2014 5:02:56 AM PST · by thackney
    CTV News ^ | December 18, 2014 | Lauren Krugel
    The CEO of TransCanada Corp. (TSX:TRP) says he doesn't see the oil industry's appetite for new pipelines faltering even though crude prices have skidded to the lowest point in more than five-years. In an interview in his downtown Calgary office, Russ Girling said he's seen ups and downs far more drastic over his career and expects the oilpatch will come out of the latest downturn in reasonably good shape. "There's a tremendous need to build irrespective of the price of the commodity right now," Girling said. "We're being pressed to get these facilities online as quickly as we possibly can."...
  • The Conventional Wisdom On Oil Is Always Wrong

    12/19/2014 4:54:53 AM PST · by thackney · 21 replies
    538 Economics ^ | DEC 18, 2014 | BEN CASSELMAN
    In 2008, I moved to Dallas to cover the oil industry for The Wall Street Journal. Like any reporter on a new beat, I spent months talking to as many experts as I could. They didn’t agree on much. Would oil prices — then over $100 a barrel for the first time — keep rising? Would post-Saddam Iraq ever return to the ranks of the world’s great oil producers? Would China overtake the U.S. as the world’s top consumer? A dozen experts gave me a dozen different answers. But there was one thing pretty much everyone agreed on: U.S. oil...
  • Don't expect a Cuban oil bonanza

    12/19/2014 4:48:35 AM PST · by thackney · 9 replies
    Politico ^ | 12/17/14 | MATT DAILY and ELANA SCHOR
    More U.S. travelers may soon start flocking to Cuba, but don’t expect oil executives to follow them. Cuba is believed to hold sizable oil and gas resources off its northwest coast, in the eastern Gulf of Mexico — raising speculation that the Communist nation could become an attractive target for energy companies if Wednesday’s diplomatic thaw eventually leads to the end of the five-decade-old U.S. trade embargo. But exploration by Brazilian, Malaysian and Spanish companies in the past few years has failed to produce any gushers — and the current worldwide glut of cheap oil is not going to encourage...
  • Exxon Mobil Shows Rising U.S. Output as Prices Fall

    12/18/2014 1:16:24 PM PST · by Up Yours Marxists · 29 replies
    Salt Lake Tribune ^ | December 18, 2014 14:15 GMT | Joe Carroll (Bloomberg News)
    Crude oil production from U.S. wells is poised to approach a 42-year record next year as drillers ignore the recent decline in price pointing them in the opposite direction. U.S. energy producers plan to pump more crude in 2015 as declining equipment costs and enhanced drilling techniques more than offset the collapse in oil markets, said Troy Eckard, whose Eckard Global owns stakes in more than 260 North Dakota shale wells. Oil companies, while trimming 2015 budgets to cope with the lowest crude prices in five years, are also shifting their focus to their most-prolific, lowest-cost fields, which means extracting...
  • Global Warming, Empty Gestures

    12/18/2014 6:37:24 AM PST · by Kaslin · 9 replies
    Townhall.com ^ | December 18, 2014 | Debra J. Saunders
    I have a theory as to why Americans don't worry all that much about global warming: High-profile purveyors of climate change don't push for reductions in greenhouse gases so much as focus on berating people who do not agree with their opinions. They call themselves champions of "the science" yet focus on ideology more than tangible results. Their language is downright evangelical. Recently, science guy Bill Nye joined other experts who objected to the media's use of the term "climate skeptic." They released a statement that concluded, "Please stop using the word 'skeptic' to describe deniers." Deniers? Like Judas? Why,...
  • Crude Oil Is Rolling Over

    12/18/2014 10:06:12 AM PST · by blam · 49 replies
    BI ^ | 12-18-2014 | Myles Udland
    Myles Udland December 18, 2014Crude oil is starting to roll over. In late morning trade, West Texas Intermediate crude oil futures were giving up earlier gains and were down more than 1% on the day. WTI futures were down near $56 a barrel on Thursday, after briefly touching $59 a barrel earlier. On Wednesday, crude oil had a wild ride, spiking ahead of the Federal Reserve's announcement before giving up those gains. (snip)
  • Venezuelan President Calls American Oil Fracking “Act of Aggression” [satire]

    12/18/2014 9:28:35 AM PST · by John Semmens · 7 replies
    Semi-News/Semi-Satire ^ | 13 Dec 2014 | John Semmens
    With his country’s economy on the ropes due to declining oil prices, Venezuelan President Nicolas Maduro blamed the United States oil fracking industry. “It is an act of aggression against my country and a crime against humanity,” Maduro maintained. “Venezuela needs high oil prices to support our programs to feed our people. These frackers are destroying our ability to feed ourselves.” While most economists see falling fuel prices as beneficial for the vast majority of consumers, Maduro complained that “most of the beneficiaries are rich, white Americans. Saving them money at our cost is a direct attack on my government’s...
  • Exxon and ConocoPhillips make record-breaking bid for offshore exploration rights

    12/18/2014 7:07:14 AM PST · by thackney · 18 replies
    Houston Business Journal ^ | Dec 17, 2014 | Olivia Pulsinelli
    Exxon Mobil Corp., ConocoPhillips and Canada-based Suncor Energy Inc. The parcel is in the Flemish Pass offshore Newfoundland in northeast Canada. That's where Norway-based Statoil ASA (NYSE: STO) last year made a major oil discovery, its third in the Flemish Pass Basin. The record-breaking bid comes as oil prices have fallen to their lowest levels in years, though production is still going strong, Houston Business Journal previously reported. The news helped boost ConocoPhillips' stock on Dec. 16, when it reached $64.94 per share, up nearly 6 percent, before closing at $63.24, up 2.5 percent. Similarly, Exxon's stock jumped to $89.14...
  • Oil drop sends major central banks in different directions

    12/18/2014 6:58:19 AM PST · by mac_truck · 2 replies
    Reuters ^ | 12/18/2014 | Paul Carrel, Mike Peacock and Howard Schneider
    The world's major central banks are scrambling to work through the implications of the near halving of the price of oil in the second half of 2014, and they are coming up with very different conclusions. Perhaps unsurprisingly, policymakers looking at robust economic recoveries such as in the United States and Britain are focused on the likely boost to growth and consumption from markedly lower energy prices and the later upward impact that should have on inflation. But for the European Central Bank, battling to revive a moribund economy, the worry is whether cheap oil could tip the euro zone...
  • North Sea oil industry 'close to collapse'

    12/18/2014 6:24:01 AM PST · by Oldeconomybuyer · 26 replies
    BBC News ^ | December 18, 2014 | By Ben King
    The UK's oil industry is in "crisis" as prices drop, a senior industry leader has told the BBC. Oil companies and service providers are cutting staff and investment to save money. Robin Allan, chairman of the independent explorers' association Brindex, told the BBC that the industry was "close to collapse". Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims. "It's almost impossible to make money at these oil prices", Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. "It's a huge crisis." "It's...
  • Mitsui CEO: U.S., Saudis Pushing Oil Prices Lower, Working Together to Hurt Islamic State and Russia

    12/18/2014 5:26:45 AM PST · by thackney · 31 replies
    Wall Street Journal ^ | Dec. 17, 2014 | PETER LANDERS And MARI IWATA
    The head of Mitsui & Co., a big energy investor, said he thinks the U.S. and Saudi Arabia are working together to keep oil prices down in an effort to hurt Islamic State and Russia. Masami Iijima, chief executive of the Japanese trading company, spoke in an interview as crude oil was trading near its lowest level since May 2009. He said the recent decision by the Saudi-led Organization of the Petroleum Exporting Countries to keep production at current levels, which triggered the oil-price plunge, would particularly hurt Islamic State, the militant group that has seized parts of Iraq and...
  • Saudi Arabia's Oil Strategy Is About More Than Destroying The US Shale Business

    12/18/2014 5:14:34 AM PST · by thackney · 34 replies
    Business Insider ^ | DEC. 17, 2014 | SHANE FERRO
    Saudi Arabia may not be aiming at the US in its hands-off policy toward falling oil prices. At a panel discussion Wednesday hosted by the Overseas Press Club and Control Risks (the latter a global risk consultancy), the speakers seemed skeptical of the idea that Saudi Arabia was refusing to prop up oil prices because it wanted to force American producers out of the market. (US shale basins are among the most expensive sources of oil to tap.) There may be better political reasons for this move, with a reduction in American shale supply on the market just being the...
  • The (temporary) pain of tanking oil prices

    12/18/2014 4:55:20 AM PST · by thackney · 2 replies
    The Globe and Mail ^ | Dec. 17 2014 | PETER TERTZAKIAN
    “Your numbers must have a bust!” exclaimed my disbelieving friend who produces oil for a living. “I don’t think so,” I said as I led him through some rough calculations. “If the price of a barrel of U.S. light oil averages $60 in 2015, the hit to the Canadian industry will be worse than in 2009.” I noted that at $80 (U.S.) a barrel, there was some immunity to the shock, but a sustained price below $60 will cause the industry to lose most of its white blood cells. “Thanks,” he muttered with a wince, like a kid that had...
  • Obama shift on Cuba won’t mean big oil boom in Gulf of Mexico

    12/18/2014 4:46:59 AM PST · by thackney · 6 replies
    Fuel Fix ^ | December 17, 2014 | Jennifer A. Dlouhy
    President Barack Obama’s decision to normalize relations between the United States and Cuba may lead to more commercial opportunities for Americans within the island nation. But don’t expect U.S. oil producers to move swiftly to take advantage of them. Although geologists believe billions of barrels of crude may be lurking off Cuba’s coast in the Gulf of Mexico, oil companies have had a hard time finding that black gold. When Repsol, Petronas and other oil companies bored exploratory wells in 2012 and 2013, they turned up dry. In some cases, oil wasn’t found, and in others, the discovery was not...
  • Congress blocks sage grouse protections, but work goes on

    12/18/2014 4:41:23 AM PST · by thackney · 11 replies
    Fuel Fix ^ | December 17, 2014 | Associated Press
    U.S. wildlife officials will decide next year whether a wide-ranging Western bird species needs protections even though Congress has blocked such protections from taking effect, Interior Secretary Sally Jewell said Wednesday. They could determine the greater sage grouse is heading toward possible extinction, but they would be unable to intervene under the Endangered Species Act. The bird’s fate instead remains largely in the hands of the 11 individual states where they are found. President Barack Obama signed a $1.1 trillion spending bill late Tuesday with a provision that barred money from being spent on rules to protect the chicken-sized bird...
  • Gold Roubles - This Is What Gold Does In a Currency Crisis

    12/17/2014 10:39:37 AM PST · by blam · 13 replies
    TMO ^ | 12-17-2014 | John_Rubino
    December 17, 2014 John Rubino To say that gold is in a bear market is to misunderstand both gold and markets. Gold isn't an investment that goes up and down. It is money in the most basic store-of-value sense. Most of the time it just sits there, and when its price changes in local currency terms that says more about the local currency than about gold. But when currencies collapse, gold shines. Consider the above from the point of view of a typical Russian. The ruble is tanking (no need to understand why -- all fiat currencies go this way...
  • Obama withdraws Alaska's Bristol Bay from oil drilling

    12/16/2014 7:59:43 PM PST · by Jet Jaguar · 35 replies
    Associated Press Fairbanks Daily News-Miner ^ | Dec 16, 2014 | Associated Press
    <p>President Barack Obama announced Tuesday that he's removing more than 52,000 square miles of waters off Alaska's coast from consideration for oil and gas exploration or drilling.</p> <p>The president said in a video announcement that Bristol Bay and nearby waters, covering an area roughly the size of Florida, would be withdrawn from consideration for petroleum leases. He called Bristol Bay one of the country's great natural resources and a massive economic engine.</p>
  • OIL JUST SPIKED

    12/17/2014 10:05:19 AM PST · by blam · 112 replies
    BI ^ | 12-17-2014 | Sam Ro
    Sam Ro December 17, 2014Oil prices are surging. The price of West Texas Intermediate crude oil on Tuesday rose to $58.98 from $54.20. Brent crude rose to $63.50 from about $58.70. At this point, there seems to be no obvious explanation for the move. On Tuesday, oil prices tumbled to five-year lows. WTI touched $53.60 and Brent sank to $59.86, both were the lowest levels since May 2009. (snip)
  • Low Oil Prices to Slow, but Not Derail US Shale Boom

    12/17/2014 9:57:31 AM PST · by thackney · 5 replies
    Rig Zone ^ | December 17, 2014 | Karen Boman
    Recent declines in North Sea Brent and West Texas Intermediate (WTI) crude oil prices – and the recent decision by the Organization of Petroleum Exporting Countries (OPEC) to maintain oil output – has caused speculation about whether the boom in U.S. shale exploration and production could continue. The U.S. shale revolution has created in a boom in U.S. oil production over the past five years, growing from 5.4 million barrels of oil per day (MMbopd) in 2009 to 8.6 MMbopd today. Shale gas production has also soared from 59.3 billion cubic feet per day (Bcf/d) in 2009 to more than...
  • Despite Pain, OPEC Hawks Come Round To Merits Of Riding Out Oil Slump

    12/17/2014 9:55:09 AM PST · by thackney · 13 replies
    Reuters via Rig Zone ^ | December 17, 2014 | Alex Lawler
    OPEC members which backed an output cut at the group's meeting last month are coming around to the view of Saudi Arabia that they need to focus on market share, further reducing the chance of any action to defend prices. While Venezuela - which campaigned for output cuts in the run-up to the Nov. 27 meeting - has continued to call for measures to prop up prices, other nations which usually back such action such as Iran and African members have been silent. "The producers have not blinked. We are just watching and selling oil at whatever the price is,"...
  • Yes, Venezuela could collapse if oil keeps dropping

    12/17/2014 6:44:33 AM PST · by SeekAndFind · 43 replies
    American Thinker ^ | 12/17/2014 | Silvio Canto Jr.
    The drop in gasoline prices is a wonderful Christmas present for U.S. consumers.  It's great up here, but keep an eye on Venezuela.  The country could collapse if prices keep dropping. TIME magazine has a good summary about the mess in Caracas: The economic dysfunction and falling price of oil leaves Maduro in a tough spot. He lacks both the political will and popularity to push through meaningful reforms to push Venezuela’s economic house in order. At the same time, he is being increasingly squeezed by the weakness in the oil price. Hugo Chávez was luckier. At the height of...
  • More than 500 rigs may shut down as oil slides, analysts say

    12/17/2014 6:33:10 AM PST · by thackney · 9 replies
    Fuel Fix ^ | December 17, 2014 | Collin Eaton
    As many as 550 drilling rigs may have to sit on the sidelines of U.S. shale oil patches over the next few months, analysts say, as oil prices have folded nearly in half since this summer. The projections come a few days after Texas drilling rigs led the nation in a 1.4 percent weekly decline in the U.S. active rig count, according to oil field services firm Baker Hughes. Oil companies cut 20 rigs in the Permian Basin, a sharp turnaround from the flurry of rigs and hydraulic fracturing equipment that had rushed to West Texas earlier this year. “We...
  • First job for new Republican Senate is Keystone XL: McConnell

    12/17/2014 5:41:54 AM PST · by mac_truck · 43 replies
    Reuters ^ | 12/16/2014 | Staff
    The new Republican-controlled Senate's first act in January will be approval of the Keystone XL pipeline, Republican leader Mitch McConnell said on Tuesday. McConnell told reporters that the bill would be based on a measure that failed in the Senate last month that was co-sponsored by North Dakota Republican John Hoeven and Louisiana Democrat Mary Landrieu. "It'll be open for amendment," McConnell said. "I will hope that senators on both sides will offer energy-related amendments but there'll be no effort to try to micromanage the amendment process." Landrieu pushed for a Keystone vote in November in a last-ditch effort to...
  • Oil Prices, Sanctions and Currency Collapse Put Putin in a Bind

    12/17/2014 4:37:09 AM PST · by elhombrelibre · 10 replies
    NBC ^ | 16 Dec 14 | Erin McClam
    Vladimir Putin is suddenly feeling the squeeze. The Russian president, earlier this year a swashbuckling land-grabber who seemed to confound the West, finds himself in a three-way economic vise — tumbling oil prices, punishing sanctions and now a collapse in his country's currency. "He really is going to be hit by a perfect storm," said Andrew Kuchins, director of the Russia program at the Center for Strategic & International Studies. "Although much of it is his own making." The value of the Russian ruble plunged by as much as 20 percent on Tuesday despite a desperate attempt by the central...
  • Russian ruble suffers new fall but the collapse slows

    12/17/2014 4:01:33 AM PST · by elhombrelibre · 11 replies
    Reuters ^ | 17 Dec 14 | Vladimir Abramov and Alexander Winning
    The dramatic fall in Russia's ruble slowed on Wednesday, with the government selling foreign currency to prop it up after a 50 percent fall against the dollar this year. Losses were partly contained by exporters selling dollars in preparation for paying their monthly tax bills but the slide was less precipitous than in the past two days when it fell about 20 percent against the dollar. At 0508 ET, the ruble was down around 1.6 percent against the dollar at 68.58 rubles per dollar and was 0.3 percent weaker versus the euro at 85.40.
  • Russians Are Scrambling To Get Their Hands On US Dollars

    12/16/2014 10:05:30 PM PST · by blam · 49 replies
    BI ^ | 12-17-2014 | Elena Holodny
    Elena Holodny December 16, 2014As Russia's currency crisis unfolds, Russians are scrambling to get their hands on US dollars. Even Russians working in the oil sector are rushing to trade their rubles in for dollars. A bank in Russia's Khanty-Mansiysk region — aka an area in Russia that produces approximately 51% of Russian oil — has completely run out of dollars, and is almost out of euros, reports Interfax. The bank still has rubles. "Basically, what this means is that people who work in the oil industry [in Khanty-Mansiysk] just got all of their money out of the bank in...
  • Saudi Arabia’s oil war against Iran and Russia

    12/16/2014 11:13:56 AM PST · by Star Traveler · 47 replies
    The New York Post ^ | Sunday, December 14, 2014 | Ralph Peters
    This week, oil fell through the price floor of $60 a barrel and gas at my local filling station was $2.26 a gallon. That’s great news for commuters and almost every business, but wonderfully bad news for our ugliest enemies. This price plunge has been driven by Saudi Arabia, OPEC’s dominant power. While it’s true that part of Riyadh’s actions respond to the energy renaissance in North America, the greater motivation is breaking Iran’s will. The Saudis believe they can no longer rely on the US to contain Tehran’s imminent nuclear threat, so they’re out to do what our lukewarm...
  • Collapse in oil prices: producers howl, consumers cheer, economists fret

    12/16/2014 9:55:53 AM PST · by Star Traveler · 27 replies
    The Guardian ^ | Tuesday, December 16, 2014 | Staff
    The price of oil has fallen by nearly half in just six months, a surprising and steep plunge that has analysts arguing over whether this is a good or bad thing. The price of oil has fallen by nearly half in just six months, a surprising and steep plunge that has consumers cheering, producers howling and economists wringing their hands over whether this is a good or bad thing. The price of a barrel of oil is just under $56, down from a summer high of $107, and lower than at any time since the US was still in recession...
  • Oil price drop means lost billions for Canada, CIBC says

    12/16/2014 9:42:00 AM PST · by Star Traveler · 18 replies
    CBC News ^ | Tuesday, December 16, 2014 | Pete Evans
    The dramatic decline in oil prices will cost Ottawa about $5 billion in lost revenue and provincial economies a little more than that, one of Canada's biggest banks suggested today. That's one of the main takeaways from a CIBC report that attempts to quantify the impact of plunging oil prices on many aspects of Canada's economy. "The recent dive in crude oil prices is an unprecedented development for the Canadian economy," the report by CIBC economists Avery Shenfeld, Peter Buchanan and Warren Lovely says. There's a broad consensus that the declining price of oil is bad economic news for Canada,...
  • Black Gold Loses Glitter

    12/16/2014 7:55:22 AM PST · by Kaslin · 25 replies
    Townhall.com ^ | December 16, 2014 | Peter Schiff
    The stunning 40% drop in the price of oil over the past few months has scrambled global economic forecasts, changed the geo-political landscape, and has severely pressured many energy sector investments. Economists are scratching their heads to determine if the drop is good or bad for the economy or whether cheap oil will add to or decrease unemployment, or complicate the global effort to "defeat" deflation. While all of these issues merit detailed discussions, the first question to address is if the steep drop is here to stay and whether energy prices will stay low enough, for long enough, to...
  • Price Of Gasoline Drops Below $2 A Gallon In Tulsa Metro

    12/16/2014 7:12:51 AM PST · by Star Traveler · 26 replies
    News on 6 [Tulsa] ^ | Russell Hulstine
    Gasoline prices are falling across northeast Oklahoma and at many convenience stores, it is now below $2 a gallon. Tuesday morning, News On 6 viewers began sending us photos of $1.99 gas prices at QuikTrips across the Tulsa area. Viewers are also reported Kum & Go's in Tulsa area communities are also selling gasoline at $1.99 a gallon. And the lower price for gasoline is not just in the Tulsa area, a South Coffeyville gas station has gas at $1.97 a gallon.
  • Tumbling oil could take thousands of jobs with it

    12/16/2014 5:20:17 AM PST · by thackney · 59 replies
    Tumbling oil could take thousands of jobs with it ^ | December 12, 2014 | Jesse Solomon
    The oil price crash could take thousands of good-paying jobs with it in America and around the world. More cuts are almost certainly on their way. On Monday, ConocoPhillips (COP) became the first major U.S. oil company to reveal that it is slashing spending for 2015, a decision the CEO asserted was "prudent given the current environment." Bad news already started to flow this week: Halliburton (HAL) affirmed that it plans to cut 1,000 positions due to the depressed oil market, and BP (BP) announced an unspecified number of layoffs as part of a $1 billion restructuring plan. It's true...
  • The U.S. Government Is Practically Begging for Global War

    12/16/2014 5:02:11 AM PST · by HomerBohn · 43 replies
    Pakalert Press ^ | 12/15/2014 | Joshua Krause
    More than two decades after the Berlin Wall fell, it appears that the United States and Russia are engaging in the same sort of proxy wars that were so common during the Cold War. Everywhere that Western and Russian spheres of influence meet there is the potential for conflict, and the two aging superpowers have shown their willingness fight through their neighbors. However, this game of chess has taken on a whole new dimension that is radically different than what we saw during the Cold War. The whole point of a proxy war is to resist your enemy without actually...
  • Rapid fall in oil prices may portend global recession

    12/16/2014 4:56:58 AM PST · by thackney · 47 replies
    NY Post ^ | December 14, 2014 | Jonathon M. Trugman
    Cratering crude-oil prices may be a blessing to cash-strapped American consumers, but it’s a double-edged sword when it comes to the overall economy. The problem for the overall economy is not so much the drop in oil prices as it is the velocity at which oil prices have fallen. The plunge from a peak of just over $100 per barrel in the early summer to today’s $58 — a massive 42 percent drop in just a few short months, most of which has come in the last 90 days — could make anyone’s head spin. The rapid fall in crude...
  • A Global Energy Superpower Rises

    12/16/2014 4:51:58 AM PST · by thackney · 11 replies
    Foreign Policy ^ | DECEMBER 15, 2014 | ED MORSE
    When it comes to crude oil and other hydrocarbons, the United States is bursting at the seams. The United States has very rapidly become a powerhouse as an exporter of finished petroleum products, natural gas liquids, other oils including ethanol, and even crude oil — with total gross exports of all of these combined expected to reach 5 million barrels per day (mb/d) or more by the end of this year, up a stunning 4 mb/d since 2005. Total oil exports in 2014 pushed the commodity to the top of the list of U.S. exports by category, far surpassing all...
  • Russia's fast track to ruin

    12/16/2014 2:01:36 AM PST · by elhombrelibre · 46 replies
    BBC ^ | 16 Dec 14 | Robert Peston
    Here are the numbers that explain why the Russian economy is imploding in the face of a tumbling oil price and Western sanctions. Oil and gas energy represents two thirds of exports of around $530bn (£339bn). Without them, Russia would have a massive deficit on its trade and financial dealings with the rest of the world - which is why Russia's central bank expects a capital outflow of well over $100bn this year and next.
  • In These 13 States, Gas Is Selling for Below $2 a Gallon

    12/15/2014 7:56:37 PM PST · by 2ndDivisionVet · 28 replies
    The Daily Signal ^ | December 15, 2014 | Natalie Johnson
    Just two weeks ago a sole gas station in Oklahoma swept headlines for dropping gas prices below $2 a gallon. Today, 13 states have joined that list and the trend is expanding. Gas for less than $1.90 a gallon can be found in at least one station in Oklahoma, Louisiana and Ohio, according to CNN. CNN cites ten additional states– Alabama, Arizona, Colorado, Indiana, Mississippi, Missouri, Nebraska, New Mexico, Texas and Virginia– that now have gas below $2 a gallon. “What we’re seeing is markets at work,” Heritage Foundation economist Nick Loris said. “Significant increases in supply and a relatively...
  • Ruble jumps on Russia rate hike, oil pressured

    12/15/2014 7:54:01 PM PST · by Bettyprob · 1 replies
    Reuters ^ | December 15, 2014 | Lisa Twaronite
    (Reuters) - Sliding oil prices and a downbeat China factory survey weighed on Asian shares on Tuesday, while the ruble jumped against the dollar after Russia sharply increased its benchmark interest rate in a bid to halt a collapse in its currency. Activity in China's factory sector shrank in December for the first time in seven months as new orders declined, adding to a spate of data showing more fatigue in the world's second-largest economy and heightening expectations that more stimulus will be needed to avert a sharper economic slowdown. "Concerns about the Russian economy and a slowdown in the...
  • Washington Post Avoids F-Word in Story About Falling Oil Prices

    12/15/2014 1:08:58 PM PST · by PJ-Comix · 28 replies
    NewsBusters ^ | December 15, 2014 | P.J. Gladnick
    It is the F-word that dares not speak its name at the Washington Post. At least not in the WonkBlog story about plunging oil prices by Chris Mooney. That word is "fracking." Mooney is notorious for his antipathy towards fracking but his failure to attribute the large increase in U.S. oil production to it is laughable. Here is Mooney noticing that oil prices are going way down but fails to credit it to you-know-what due to his ideology:
  • WTI Crude Craters To $55 Handle, High-Yield Credit Crashing-er

    12/15/2014 12:14:43 PM PST · by tcrlaf · 19 replies
    Zerohedge ^ | 12-15-2014 | Durden
    Having almost touched $59 overnight, WTI crude has collapsed back to a $55 handle, smashing the Ruble lower and high-yield credit spreads higher. US financial stocks are starting to weaken back towards the credit market's warnings as counterparty risk concerns spread...
  • US Rig Count Descent Begins In Conventional Oil Areas

    12/15/2014 11:04:18 AM PST · by thackney · 44 replies
    Oil Pro ^ | 12/14/2014 | Joseph Triepke
    In the US, the land rig count fell 28 units to stand at 1,820 last week. A decline in vertical oil drilling activity took the rig count lower. Horizontal oil drilling (ie activity in the unconventional oil plays) was only down 7 rigs on the week—about in line with normal seasonal trends this time of year. Much of this week's activity decline was due to a slowdown in conventional drilling in the Permian Basin. The number of vertical rigs in the Permian fell by 13 to 188. The Permian horizontal rig count was only down 7 to 360. While...
  • Stocks Tumble in Volatile Session as OPEC Triggers Fresh Oil Freefall

    12/15/2014 9:46:50 AM PST · by John W · 15 replies
    thestreet.com ^ | December 15, 2014 | Keris Alison Lahiff
    NEW YORK (TheStreet) -- OPEC doubled-down on its commitment to current levels of oil production, triggering a fresh selloff in crude prices on Monday. The fall in commodities alongside nerves heading into the Federal Reserve meeting Tuesday pulled stocks lower to start the week. Crude oil prices were falling again after secretary general of OPEC, Abdallah Salem el-Badri, said the oil cartel had not set a fixed oil-price target. Separately, United Arab Emirates oil minister Suhail Al-Mazrouei said the group would stick to production levels even if oil falls to $40 a barrel.
  • Predicting The Oil Price: Smart Vs Lucky

    12/15/2014 8:32:37 AM PST · by thackney · 6 replies
    Forbes ^ | 12/15/2014 | Michael Lynch
    Paul Krugman made the point recently that the only stock market forecasters who correctly predicted a market drop were those who always predicted falling markets. This is known as the ‘stopped watch’ approach to forecasting: constantly make one prediction and eventually the market will move in that direction. Especially for oil prices, which are highly variable, this works wonders to the point where the great Adam Sieminski often joked that you should predict the price or the date, but not both. This is reminiscent of Napoleon’s adage, that it’s better to have lucky generals than smart ones. He didn’t note...